SMM Aluminum Weekly Price Review and Forecast (Feb. 9-13, 2015)

SHANGHAI, Feb. 9 (SMM) – SHFE 1504 aluminum contract followed crude oil and LME aluminum up to RMB 13,350/mt, but surrendered gains later. In China’s spot market, sellers were anxious to sell, but processors showed little interest. This widened spot discounts to RMB 140/mt over SHFE 1502 aluminum contract.

 

Investors are cautious about opening long positions, so the most active SHFE aluminum contract should remain weak between RMB 13,200-13,350/mt. In China’s spot market, supply and demand will fall in tandem with the Chinese New Year holiday just around the corner. Spot discounts are expected to expand to RMB 140-180/mt over the SHFE 1502 aluminum contract.